Did you know that for all companies incorporated in Singapore, auditing is compulsory unless exempted? This increases credibility to the information provided to shareholders and assure investors to confidently make their decisions in a safe environment, reducing cost of capital and empowers companies to be profitable.
Advantages of Auditing
The benefits of auditing include:
- Satisfying stakeholders such as employees, customers, suppliers, and pressure group, as well as the investing community, as to the credibility of published information
- Facilitates the payment of corporate tax, good and services tax, and other taxes on time and accurately, thereby avoiding interest, penalties, and investigations
- Enables the company to comply with banking covenants
- Helps to deter and detect material fraud and error
- Facilitates the purchase and sale of businesses
- Takes advantage of the spin-off benefits such as advice on the structure and operations of systems
Demonstrates good corporate governance and citizenship
Special Purpose Audit/Certification for Subsidy Claim Audit
Claims are provided for certain audit purposes, which include:
1. Childcare/ Infant Subsidy Claims Audit
As part of MCYS audit requirements, Childcare centres are required to engage certified public accountants (CPA) to audit the centre’s infant/childcare subsidy claims annually or upon cessation of business.
We do the provision of auditing service on childcare centre’s infant/childcare subsidy claims and the scope of our Infant/child Care Subsidy Claims Audit Service includes preparation of the following which must be submitted to the Ministry 3 months after the centre’s financial year-end or cessation of business:
- Preparation of the Statement of Subsidy Claims for the Financial Year
- Preparation of Certification by External Auditors
- Fund Raising Appeal by Societies
This is in accordance with the provision of Regulation 6 of the Societies Regulations issued under the Societies Act Chapter 311, Section 34 (the “Regulations”) relating to the fund-raising appeal held by the Society.
2. Claim Summary of Project Qualifying Costs
This is one of the Special Purposes Audit reports on the Claim under a particular Approved Project and under a particular Scheme administered by IDA based on the terms and conditions provided in the Letter of Offer between the company and the IDA.
The claims are for Approved Grant Amounts set the maximum amounts approved by IDA as set out in Qualifying Costs Table.
3. House to House and Street Collection (HHSC)
License Audit Under the House to House and Street Collections Act, an HHSC license is required if one promotes a collection by way of appealing to the public, made using visits from house to house or of soliciting in streets or other places or by both such means, for money and other property.
After the collection event, the collection account needs to be certified by the chief promoter of the collection and by a CPA who is appointed by the organisation of the chief promoter to be the auditor of the account.
Other Certifications
We also certify the following financial information, statement, and statistics through our certification audit:
- Fixed Assets Certification
- Claim
- Shares Certification
- Personal Income Certification
Engagement to Perform Agreed-upon Procedures (SSRS 4400) Government Agencies Grant Claim
The following Engagements to perform Agreed-upon Procedures Regarding financial information is referred to SSRS 4400. Auditor’s Reports are on Factual Findings based on terms of reference outlined by the Government Agencies. The audit coverage shall cover at least 85% of the value claimed in the statement.
Administered government agencies for grants include, among others:
- EDB
- STPB
- MAS
- MCYS
- MICA
- IDA
Certification Audit for Confirmation of JTC Leases
It is part of SSRS 4400 to certify the investment quantum on Plant & Machinery and Building & Civil Works incurred by the licensee has complied with the lessor’s lease terms with JTC Corporation.
Submission of the Value-added productivity (VAP) figures to the BCA
Under this requirement, all larger companies, from A1-B2 registered under Construction Workheads (CW) of BCA Contractors Registry must submit their VAP figures on an annual basis. Procedures in connection with the computation of the VAP figure is defined by the BCA.
Audit Services in Singapore
Audit services provided by a certified public accountant (CPA) like Paul Hype Page & Co, benefits all Singaporean companies. Paul Hype Page is a full practicing member of ICPAS, providing audit services and able to issue IRAS approved audit report from $4,500 onward.
Our audit professionals provide a range of independent audit services based on a strong knowledge of accounting principles. These are complemented by an appropriate knowledge of business systems, processes, and controls.
Our audit services include:
- Annual Financial Audit
- Special Purpose Audit/Certification for Subsidy Claim Audit
- Engagement to Perform Agreed-upon Procedures (SSRS 4400) Government Agencies Grant Claim
Ready to start your company in Singapore or looking for an auditor? Reach out to us and see how we can help in your journey!
FAQs
The Profit and Loss Account as well as the balance sheet need to be audited annually.
You should nominate at least one auditor within 3 months after your company is incorporated.
It depends on the capacity and complexity of your business.
If your company is small, as long as it meets 2 out of 3 criteria as below, it is exempted from the audit:
- total annual revenue is less than or equal to S$ 10mil;
- total assets less than or equal to S$ 10mil;
- have less than or 50 employees
